Extreme Networks (NASDAQ:EXTR) Announces Quarterly Earnings Results

Extreme Networks (NASDAQ:EXTR) released its quarterly earnings results on Wednesday. The technology company reported $0.26 EPS for the quarter, topping analysts’ consensus estimates of $0.24 by $0.02, FiscalAI reports. Extreme Networks had a net margin of 0.75% and a return on equity of 75.56%. The business had revenue of $317.93 million during the quarter, compared to analysts’ expectations of $312.33 million. During the same quarter in the previous year, the company earned $0.21 EPS. The business’s quarterly revenue was up 13.8% compared to the same quarter last year. Extreme Networks updated its Q3 2026 guidance to 0.230-0.250 EPS and its FY 2026 guidance to 0.980-1.020 EPS.

Here are the key takeaways from Extreme Networks’ conference call:

• Q2 revenue of $318 million beat guidance and rose 14% year-over-year, marking the company’s seventh consecutive quarter of revenue growth and a 25% increase in SaaS ARR to $227 million.
• Management highlighted strong upmarket traction with 34 deals over $1 million and multiple multimillion-dollar Platform One and Campus Fabric wins across retail (3,000 stores), healthcare, education, stadiums and government.
• Non-GAAP gross margin was 62%, but Q3 guidance calls for a modest margin dip to 61.0%–61.4% due to several low-margin, large professional-services installations; full-year revenue guidance was raised to $1.262B–$1.270B with EPS of $0.98–$1.02.
• Company says it has pricing power and supply-chain agility—a ~7% price increase was absorbed by customers and teams sourced alternative DDR4 memory and other components to mitigate shortages and protect margins.
• Differentiation in AI and channel strategy — the Platform One agentic AI core, end-to-end Campus Fabric and new Extreme Partner First program helped MSP partners nearly double and billings grow >3x year-over-year, supporting recurring revenue momentum.

Extreme Networks Stock Down 4.3%

Shares of EXTR opened at $14.37 on Friday. The stock has a market capitalization of $1.92 billion, a price-to-earnings ratio of 205.32, a price-to-earnings-growth ratio of 1.67 and a beta of 1.64. The business’s 50 day simple moving average is $16.55 and its 200-day simple moving average is $18.65. The company has a debt-to-equity ratio of 1.61, a current ratio of 0.95 and a quick ratio of 0.75. Extreme Networks has a 1 year low of $10.10 and a 1 year high of $22.89.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the stock. Oppenheimer raised shares of Extreme Networks from a “market perform” rating to an “outperform” rating and set a $25.00 price target for the company in a research note on Thursday, October 30th. B. Riley reaffirmed a “buy” rating on shares of Extreme Networks in a research note on Thursday, October 30th. UBS Group restated a “neutral” rating and set a $17.00 price target on shares of Extreme Networks in a research report on Thursday. Bank of America started coverage on shares of Extreme Networks in a research report on Wednesday, November 19th. They set a “buy” rating and a $24.00 price target for the company. Finally, Wall Street Zen upgraded Extreme Networks from a “buy” rating to a “strong-buy” rating in a research note on Sunday, January 25th. Six research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $22.67.

Insiders Place Their Bets

In other news, CEO Edward Meyercord sold 50,000 shares of the company’s stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $16.54, for a total transaction of $827,000.00. Following the transaction, the chief executive officer owned 1,871,418 shares of the company’s stock, valued at approximately $30,953,253.72. This represents a 2.60% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 3.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On Extreme Networks

Several institutional investors have recently made changes to their positions in EXTR. Balyasny Asset Management L.P. purchased a new stake in Extreme Networks during the second quarter valued at approximately $685,000. Headlands Technologies LLC raised its stake in Extreme Networks by 94.7% in the 2nd quarter. Headlands Technologies LLC now owns 38,836 shares of the technology company’s stock worth $697,000 after acquiring an additional 18,890 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank boosted its stake in shares of Extreme Networks by 8.4% during the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 39,735 shares of the technology company’s stock worth $821,000 after acquiring an additional 3,087 shares in the last quarter. First Trust Advisors LP acquired a new stake in Extreme Networks in the 2nd quarter worth about $834,000. Finally, Natixis Advisors LLC boosted its stake in shares of Extreme Networks by 12.3% in the third quarter. Natixis Advisors LLC now owns 16,484 shares of the technology company’s stock worth $340,000 after acquiring an additional 1,809 shares during the last quarter. Hedge funds and other institutional investors own 91.05% of the company’s stock.

About Extreme Networks

Extreme Networks, Inc (NASDAQ: EXTR) is a global provider of end-to-end networking solutions designed to support enterprise, data center, and service provider environments. The company’s product portfolio encompasses high-performance wired and wireless access switches, routers, network security appliances, and software-defined networking (SDN) tools. Driven by a cloud-native management architecture, Extreme’s Intelligent Edge Platform integrates network analytics, automation and orchestration capabilities to help organizations optimize performance, reduce operational complexity and strengthen security.

Since its founding in the mid-1990s and subsequent public listing in 1999, Extreme Networks has expanded its technology footprint through targeted acquisitions.